Which of the Following Venture Is Riskiest

question 43

Multiple Choice

Which of the following venture is riskiest?

• A)Starting up a store to sell improved versions of existing surfboards.
• B)Starting a business to sell the first motorized surfboard.
• C)Setting up a store to sell fireworks.
• D)Buying an existing skydiving school.

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Definitions:

Target Profit

The goal set for the amount of net income a company plans to achieve at a specific time.

Units Sold

The quantity of product units that have been sold during a particular time period.

Contribution Format

The contribution format is a financial statement layout that separates fixed and variable costs, allowing for easier calculation of contribution margin and breakeven analysis.

Net Operating Income

The profit realized from a business's operations after subtracting operating expenses from revenue.